Artisan Partners(APAM) - 2024 Q1 - Quarterly Results

Financial Performance - Revenues for the March 2024 quarter were $264.4 million, a 6% increase from $249.0 million in the December 2023 quarter, driven by higher average AUM[3] - GAAP net income for the March 2024 quarter was $59.5 million, or $0.84 per share, compared to $64.8 million, or $0.92 per share, in the December 2023 quarter[3] - Adjusted net income for the March 2024 quarter was $61.6 million, or $0.76 per adjusted share, compared to $62.8 million, or $0.78 per adjusted share, in the December 2023 quarter[3] - Operating income for the same period was $77.7 million, slightly up from $76.4 million in the previous quarter and significantly higher than $68.3 million a year ago[17] - Net income attributable to Artisan Partners Asset Management Inc. was $59.5 million, down from $64.8 million in the previous quarter but up from $50.8 million year-over-year[17] - Adjusted net income (Non-GAAP) for the quarter was $61.6 million, slightly down from $62.8 million in the previous quarter and up from $51.8 million year-over-year[20] - Adjusted operating income (Non-GAAP) was $81.6 million, compared to $80.0 million in the previous quarter and $70.0 million a year ago[20] Assets Under Management (AUM) - Assets Under Management (AUM) increased to $160.4 billion as of March 31, 2024, a 7% increase from $150.2 billion at December 31, 2023, primarily due to $10.8 billion of market appreciation[3] - AUM increased by 16% from $138.5 billion at March 31, 2023, primarily due to $26.0 billion of investment returns[4] - Total assets under management (AUM) as of March 31, 2024, reached $160.384 billion, an increase from $150.167 billion at the end of the previous quarter[38] - Average AUM for the quarter was $154.158 billion, compared to $140.291 billion in the same quarter last year, reflecting a year-over-year growth[38] Operating Expenses - Operating expenses increased to $186.7 million in the March 2024 quarter, an 8% increase from $172.6 million in the December 2023 quarter, primarily due to higher incentive compensation expenses[3] - Total operating expenses increased to $186.7 million from $172.6 million in the previous quarter and $166.2 million a year ago[17] Cash Flow and Dividends - The company declared a variable quarterly dividend of $0.68 per share for the March 2024 quarter, representing approximately 80% of the cash generated[9] - Cash and cash equivalents were $184.2 million at March 31, 2024, up from $141.0 million at December 31, 2023[9] Investment Performance - Total investment gains were $31.3 million in the March 2024 quarter, compared to $36.2 million in the December 2023 quarter[3] - Investment returns and other contributions amounted to $10,825 million, down 25.7% from $14,564 million in the previous quarter[32] - The overall performance of the investment strategies is reflected in the gross composite performance metrics, which are expected to be detailed in subsequent reports[39] Client Cash Flows - Gross client cash inflows totaled $6,186 million for the three months ended March 31, 2024, a 12.3% increase from $5,506 million in the previous quarter[32] - Net client cash flows were negative at $(523) million, compared to $(398) million in the previous quarter, indicating a decline in net inflows[32] Strategic Focus - The company plans to expand its investment strategies and enhance its product offerings to drive future growth[36] - Artisan Partners has been managing client assets since 1994, focusing on value-added investment strategies[15] Conference Call Information - The conference call will be hosted on April 24, 2024, at 1:00 p.m. (Eastern Time) to discuss the financial results[12] - The conference call will be accessible via the company's website and through a dedicated phone line for international callers[12] - A replay of the conference call will be available until May 1, 2024, at 9:00 a.m. (Eastern Time)[12] Investment Strategies and Rankings - Artisan High Income Fund - Advisor Share was ranked 74 out of 666 in the High Yield Bond category for the 1-year period as of March 31, 2024[15] - The company provides a diverse range of investment strategies across multiple asset classes, committed to attracting experienced investment professionals[15] - The document includes performance data for various strategies, with specific returns and benchmarks noted[1]